The only way is down when it comes to West Kensington lease terms. West Kensington properties that have a lease term less than than eighty years will reduce in market price even faster, and the cost of extending your lease will increase.
It is conventional wisdom that a residential leasehold with over one hundred years remaining is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service will provide you better control over the value of your West Kensington leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Andrew owned a 2 bedroom apartment in West Kensington on the market with a lease of a little over 72 years remaining. Andrew on an informal basis approached his landlord a well known Bristol-based freehold company for a lease extension. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £100 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Andrew to invoke his statutory right. Andrew procured expert advice and was able to make an informed decision and deal with the matter and readily saleable.
Last Spring we were called by Mr and Mrs. P Ward , who took over the lease of a basement flat in West Kensington in May 1997. The question was if we could approximate the price could be to prolong the lease by ninety years. Comparative premises in West Kensington with 100 year plus lease were worth £290,000. The mid-range ground rent payable was £45 collected every twelve months. The lease end date was on 23 February 2097. Given that there were 73 years remaining we estimated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 not including professional charges.
An example of a Lease Extension decision for a West Kensington flat is 93 Oakwood Court in June 2010. the LVT determined that the premium to be paid for the new lease was £492,083, This case was in relation to 1 flat. The unexpired term as at the valuation date was 37.79 years.